Homebuyers can expect more of the same in Seattle this year, as inventory will continue to decline while prices are expected to continue their rise across the region. As King 5 News reports, there will be just over 20% fewer homes available for sale in 2018 than there were this past year, part of an inventory shortage now being described as “approaching crisis levels” among the nation’s hottest markets. Given the increased demand and lack of availability, it’s not much of a surprise that in 2017, 52.4% of homes sold above their asking price, as Emerald City home prices grew 12.5%, nearly double the nation’s 6.5% average.
A recent article published by Seattle Times shed light on just how much home values are rising, as they report that 1 in every 5 or 6 homes that sold in King County in 2017 reached 7 figures, a 71% increase compared to 2016 numbers.
Looking to 2018 predictions, Zillow’s press release says Seattle is ranked the third hottest market for the coming year, behind only San Jose and Raleigh. “On the supply side, the market is starving for new homes, but it won’t be easy for builders struggling with high and rising land, labor and lumber costs,” said Aaron Terrazas, senior economist with Zillow. “Aging millennials and young families may be able to find more affordable new homes for sale this year, but they’ll most likely be in further-flung suburbs with more grueling commutes to urban job centers.”
For additional information regarding market fundamentals, explore the Northwest Multiple Listing Service Year-End Report or schedule a complimentary appointment with me to discuss your real estate goals.